New York Attorney General reaches $2 billion settlement with Genesis after claims of fraud
- New York Attorney General Letitia James says her office has secured a $2 billion settlement from Genesis.
- AG Letitia James sued the crypto company in October on account of lying and defrauding investors of over $1 billion.
- Genesis has been banned from operating in New York.
After a lawsuit filed by the New York Attorney General against crypto lender Genesis in late 2023, the company reached a settlement of $2 billion with the AG on Monday.
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Genesis Trading settles lawsuit with New York AG
In an X post on Monday, New York Attorney General Letitia James announced that her office has secured a $2 billion settlement with bankrupt cryptocurrency firm Genesis Global. The settlement was made to compensate investors who she claimed were lied to and defrauded by the company.
AG Letitia James sued the company in October 2023 on accounts of lying and defrauding investors of over $1 billion. This was alongside a lawsuit against DCGco, claiming that the companies had defrauded 230,000 investors through the Gemini Earn investment platform, being an unregulated crypto industry.
My office secured $2 billion from crypto platform @GenesisTrading for lying and cheating investors. This is the largest settlement against a crypto company in New York history.
— NY AG James (@NewYorkStateAG) May 20, 2024
That money will go back to defrauded investors, and Genesis is also banned from operating in New York. https://t.co/tfQf1wwKu6
This began after Genesis filed for Chapter 11 bankruptcy earlier in 2023 and froze withdrawal options for its customers on the platform. The company only received court approval last week to refund its customers $3 billion of cash and cryptocurrency.
The settlement with Genesis is the largest settlement against a crypto company in New York history. "This historic settlement is a major step toward ensuring the victims who invested in Genesis have a semblance of justice," said AG Letitia James.
Also read: US Senators raise grave concerns over DOJ's policies towards cryptocurrency asset providers
"Once again, we see the real-world consequences and detrimental losses that can happen because of a lack of oversight and regulation within the cryptocurrency industry," she added.
The settlement further required bankruptcy court approval and will create a "Victim's Fund" for defrauded investors. Additionally, Genesis is banned from operating in New York.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addition to
